2021, as amended by Legal Notices 29
2022, 73
2023, 45 and 154
2025. 1.
these regulations is the Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) Regulations. Title and scope.
these regulations is to transpose Articles 2
Directive 2013/36/EU. 2. requires -
the CRR; "branch" shall have the same meaning as that assigned to it in point
the CRR; "consolidated basis" shall have the same meaning as that assigned to it in point
the CRR; "consolidated situation" shall have the same meaning as that assigned to it in point
the CRR; "the competent authority" means the Malta Financial Services Authority established by the Malta Financial Services Authority Act; "consolidating supervisor" shall have the same meaning as that assigned to it in point
the CRR; "CRD" means Directive 2013/36/EU
the European Parliament and
the Council
26 June 2013 on access to the activity
credit institutions and the prudential supervision
credit institutions, amending Directive 2002/87/EC and repealing Directives 2006/48/ EC and 2006/49/EC; *See Legal Notice 37
the European Parliament and
the Council
26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012; "EBA" means the European Banking Authority as established by Regulation (EU) No 1093/2010
the European Parliament and
the Council
24th November 2010 establishing a European Supervisory Authority; "EEA" means a State which is a contracting party to the Agreement on the European Economic Area signed at Oporto on the 2nd May, 1992 as amended by the protocol signed at Brussels on 17th March, 1993 and as amended by any subsequent Act; "EIOPA" means the European Insurance and Occupational Pensions Authority as established by Regulation (EU) No. 1093/2010
the European Parliament and
the Council
24th November 2010 establishing a European Supervisory Authority; "ESCB central banks" shall have the same meaning as that assigned to it in point
the CRR; "ESRB" means the European Systemic Risk Board established by Regulation (EU) No 1092/2010; "EU investment firm" means a firm as defined in Article 4
the CRR, authorised by its European regulatory authority within the meaning
the MiFID Directive or authorised by a European regulatory authority in an EEA State; "EU parent financial holding company" shall have the same meaning as that assigned to it in point
the CRR; "EU parent institution" shall have the same meaning as that assigned to it in point
the CRR; "EU parent mixed financial holding company" shall have the same meaning as that assigned to it in point
the CRR; "European regulatory authority" means an authority which is situated in a country or territory outside Malta that is a Member State and is empowered by law or regulation to supervise investment firms; "financial holding company" shall have the same meaning as that assigned to it in point
the CRR; INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) [ S.L. 370.46. "financial institution" shall have the same meaning as that assigned to it in point
the CRR: Provided that the entities referred to in point
the CRD shall be treated as financial institutions; "home Member State" shall have the same meaning as that assigned to it in point
the CRR; "host Member State" shall have the same meaning as that assigned to it in point
the CRR; "insurance undertaking" shall have the same meaning as that assigned to it in point
the CRR; "investment firm" means a person who holds an investment services licence issued by the competent authority under the Act and which is subject to the requirements
the CRD and CRR; "Member State" includes an EU and EEA State; "mixed activity holding company" shall have the same meaning as that assigned to it in point
the CRR; "mixed financial holding company" shall have the same meaning as that assigned to it in point
the CRR; "parent financial holding company in a Member State" shall have the same meaning as that assigned to it in point
the CRR; ''parent institution in Malta" means an institution in Malta which has an institution or a financial institution as a subsidiary or which holds a participation in such an institution or financial institution, and which is not itself a subsidiary
another institution authorised in Malta, or
a financial holding company or mixed financial holding company set up in Malta; "parent mixed financial holding company in a Member State" shall have the same meaning as that assigned to it in point
the CRR; "parent undertaking" shall have the same meaning as that assigned to it in point
the CRR; "participation" shall have the same meaning as that assigned to it in point
the CRR; "Rules" means Rules for investment firms issued by the competent authority in terms
the Act; 3 4 INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) [ S.L. 370.46 "sub-consolidation basis" shall have the same meaning as that assigned to it in point
the CRR; "subsidiary" shall have the same meaning as that assigned to it in point
the CRR; "third country" means a country that is not a Member State; "third country regulatory authority" means an authority which is in a country or territory that is not a Member State and is empowered by law or regulation to supervise investment firms.
the competent authority for consolidated supervision. Substituted by: L.N. 29
2022. Amended by: L.N. 73
2023; L.N. 45
2025. 3.
its subsidiaries is a credit institution, if the competent authority supervises that parent investment firm or that EU parent investment firm on an individual basis; (b) where a parent undertaking is a parent investment firm established in Malta or in another Member State or an EU parent investment firm and at least one
its subsidiaries is a credit institution supervised by the competent authority: Provided that, where there are several credit institutions, the competent authority shall exercise supervision on a consolidated basis where it supervises the credit institution with the largest balance sheet total; (c) where the parent
an investment firm is a parent financial holding company established in Malta or in another Member State, a parent mixed financial INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) [ S.L. 370.46. holding company in Malta or in another Member State, an EU parent financial holding company or an EU parent mixed financial holding company, where the competent authority supervises the investment firm on an individual basis. (d) where two or more institutions authorised in the European Union, one
which is a credit institution supervised by the competent authority, have the same parent financial holding company established in Malta or in another Member State, parent mixed financial holding company established in Malta or in another Member State, EU parent financial holding company or EU parent mixed financial holding company, and: (
this paragraph, the term "institution" shall include credit institutions and investment firms; (iii) (e) the competent authority supervises the investment firm with the largest balance sheet total, where the group does not include any credit institution; where consolidation is required pursuant to Article 18
the CRR and the competent authority supervises the credit institution with the largest balance sheet total or, where the group does not include any credit institution, by the competent authority
the investment firm with the largest balance sheet total.
derogation from sub-regulation
the balance sheet totals
those supervised investment firms is higher than that
the investment firms supervised on an individual basis by any other European regulatory authority, and there are no credit institutions in 5 6 INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) [ S.L. 370.46 the group.
the competent authority with the other relevant European regulatory authorities and a European regulatory authority may be appointed to exercise supervision on a consolidated basis where the application
the criteria referred to in the said sub-regulation
their activities in the relevant Member States, or the need to ensure the continuity
supervision on a consolidated basis by the same European regulatory authority. In these cases, before such decision is taken the EU parent institution, the EU parent financial holding company, the EU parent mixed financial holding company or the institution with the largest balance sheet total, as applicable, shall have the right to be heard.
any agreement falling within subregulation
the competent authority with respect to supervision on a consolidated basis. 4.
the Act and any regulations or Rules made thereunder transposing the requirements
the CRD, and by the CRR, the competent authority acting as consolidating supervisor, shall carry out the following tasks: (a) co-ordination
the gathering and dissemination
relevant or essential information in going concern and emergency situations; (b) planning and co-ordination
supervisory activities in going concern situations, including in relation to the activities relating to supervision on a consolidated basis in co-operation with the European regulatory authorities; and (c) planning and co-ordination
supervisory activities in co-operation with the European regulatory authorities involved, and if necessary with ESCB central banks, in preparation for and during emergency situations, including adverse developments in investment firms or in financial markets using, where possible, existing channels
communication for facilitating crisis management. These include exceptional measures referred to in regulation 9
joint assessments, the implementation
contingency plans and communication to the public.
Regulation (EU) No 1093/2010.
the CRD or any European regulatory authority does not co-operate with the consolidating supervisor to the extent required in carrying out the tasks in Article 112
the CRD, it may refer the matter to the EBA and request its assistance under Article 19
Regulation (EU) No 1093/ 2010. 5.
Regulation (EU) No 1093/2010 or a situation
adverse developments in markets arises, which potentially jeopardises the market liquidity and the stability
the financial system in any
the Member States where entities
a group have been authorised or where significant branches as referred to in regulation 14 are established and where the competent authority is the consolidating supervisor, it shall, subject to confidentiality requirements in the Malta Financial Services Authority Act and any other applicable law, alert as soon as is practicable the EBA and the authorities referred to in Articles 58
the CRD and it shall communicate to the said authorities all the information that is essential for the pursuance
their tasks. Notifications in emergency situations. Cap. 330.
communication with ESCB central banks.
reporting to the various authorities involved in supervision. 6.
the group.
the subsidiary
a parent undertaking which is an Written coordination and cooperation agreements with European regulatory authorities. Amended by: L.N. 29
2022. 8 [ S.L. 370.46 INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) investment firm, it may, by bilateral agreement in accordance with Article 28
Regulation (EU) No 1093/2010, delegate its responsibility for supervision
such subsidiary to the European regulatory authority which authorised and supervises the parent undertaking so that the latter assume responsibility for supervising the subsidiary in accordance with the CRD. The competent authority shall forward the content
such agreements to the EBA.
the CRD is established in a Member State other than Malta, the co-ordination and co-operation arrangements referred to in sub-regulations
the CRD and is established in Malta, the co-ordination and co-operation arrangements referred to sub-regulations
the colleges
supervisors by the consolidating supervisor. Amended by: L.N. 29
2022; L.N. 154
2025. 7.
supervisors to facilitate the exercise
the tasks referred to in regulation 4, regulation 5
sub-regulation
a college
supervisors, the competent authority shall contribute towards the provision
a framework for the consolidating supervisor, EBA and other European regulatory authorities or third country regulatory authorities forming part
that college, to carry out the following tasks: (a) exchange information with European regulatory authorities and third country regulatory authorities forming part
that college and with EBA in accordance with Article 21
Regulation (EU) No 1093/2010; (b) agreeing on voluntary entrustment
tasks and voluntary delegation
responsibilities where appropriate; (c) determining supervisory examination programmes referred to in Article 99
the CRD based on a risk assessment
the group in accordance with Article 97
the CRD; INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) [ S.L. 370.46. (d) increasing the efficiency
supervision by removing unnecessary duplication
supervisory requirements, including in relation to the information requests referred to in Article 114 and Article 117
the CRD; (e) consistently applying the prudential requirements under the CRD and the CRR across all entities within a group
investment firms, without prejudice to the options and discretions available in European Union law; and (f) applying Article 112
the CRD taking into account the work
other fora that may be established in that area. (2A) In order to facilitate the tasks referred to in sub-regulation
supervisors where all the cross-border subsidiaries
an EU parent institution, an EU parent financial holding company or an EU parent mixed financial holding company have their head
fices in third countries: Provided that the third countries’ regulatory authorities are subject to confidentiality requirements that are equivalent to the requirements laid down in the Malta Financial Services Authority Act and any other applicable law. Cap. 330.
a college
supervisors, shall co-operate closely with EBA and all the European regulatory authorities and third country regulatory authorities forming part
the relevant college
supervisors. The confidentiality requirements under the Malta Financial Services Authority Act and the Act shall not prevent the competent authority from exchanging confidential information within colleges
supervisors. The establishment and functioning
colleges
supervisors shall not affect the rights and responsibilities
the competent authority under the provisions
the Act, and any regulations or Rules made thereunder transposing the requirements
the CRD, and under the CRR. Cap. 330.
these regulations, it shall establish and manage the colleges
supervisors based on written arrangements referred to in regulation 6, determined after consultation with European regulatory authorities and third country regulatory authorities concerned.
a college
supervisors when: (a) it is responsible for the supervision
subsidiaries 9 10 INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) [ S.L. 370.46
an EU parent institution, an EU parent financial holding company or an EU parent mixed financial holding company; (
the Act is established.
the college and shall decide which European regulatory authorities and third country regulatory authorities, where relevant, participate in a meeting or in an activity
the college. The decision shall take into account the relevance
the supervisory activity to be planned or co-ordinated for those authorities, and in particular, the potential impact on the stability
the financial system in the Member States concerned and, in particular, in emergency situations, based on the information available at the relevant time and the obligations referred to in regulation 14
the college fully informed, in advance,
the organisation
the meetings
the college, about the main issues to be discussed and the activities to be considered and shall also keep all the members
the college fully informed, in a timely manner,
the actions taken in those meetings or the measures carried out. Cap. 330.
the Malta Financial Services Authority Act and the Act, inform the EBA
the activities
the college
supervisors, including in emergency situations, and communicate to the EBA all the information that is
particular relevance for the purposes
supervisory convergence.
disagreement between the competent authorities on the functioning
the supervisory colleges, the competent authority may refer the matter to the EBA and request its assistance in accordance with Article 19
Regulation (EU) No 1093/ 2010.
sub-regulation
subsidiaries
an EU parent institution, an EU parent financial holding company or an EU parent mixed financial holding company; (b) the European regulatory authorities
a host member state where significant branches, as referred to in Article 51
the CRD, are established; (
the competent authority and all the European regulatory authorities concerned, to the requirements under Chapter 1, Section II
the CRD, and where applicable, Chapter 1, Section 2
the IFD. 8.
subsidiaries
an EU parent institution, an EU parent financial holding company or an EU parent mixed financial holding company which are investment firms, shall do everything within its power to reach a joint decision with the other European regulatory authorities: Joint decisions on specific prudential requirements. Substituted by: L.N. 29
2022. Amended by: L.N. 45
2025. (a) on the application
Articles 73 and 97
the CRD as transposed in the Investment Services Rules and in Investment Services Act (Supervisory Review) Regulations to determine the adequacy
the consolidated level
own funds held by the group
institutions with respect to its financial situation and risk profile and the required level
own funds for the application
point (a)
the CRD as transposed in the Investment Services Act (Supervisory Review) Regulations, each entity within the group
institutions and on a consolidated basis; S.L. 370.15. (b) on measures to address any significant matters and material findings relating to liquidity supervision, including relating to the adequacy
the organisation and the treatment
risks as required pursuant to Article 86
the CRD as transposed in the Investment Services Rules and relating to the need for institution-specific liquidity requirements in accordance with Article 105
the CRD as transposed in the Investment Services Act (Supervisory Review) Regulations. S. L. 370.15. (c) on any guidance on additional own funds referred to in Article 104b
the CRD as transposed in the Investment Services Act (Supervisory Review) Regulations. S. L. 370.15.
sub-regulation
the group
institutions in accordance with Article 104a
the CRD as transposed in the Investment Services Act (Supervisory Review) Regulations to the other relevant European regulatory authorities; (b) for the purpose
sub-regulation
the liquidity risk profile
the group
institutions in accordance with Articles 86 and 105
the CRD as transposed in the Investment Services Rules and in the Investment Services Act (Supervisory Review) Regulations, to the other relevant European regulatory authorities; (c) for the purpose
sub-regulation
the group
institutions in accordance with Article 104b
the CRD as transposed in the Investment Services Act (Supervisory Review) Regulations, to the other relevant European regulatory authorities.
the reports referred to in sub-regulation
subsidiaries performed by the competent authority and, or relevant European regulatory authorities in accordance with Articles 73, 97, 104a and 104b
the CRD as transposed in the Investment Services Rules and in the Investment Services Act (Supervisory Review) Regulations.
disagreement, the competent authority shall, at the request
any
the other European regulatory authorities concerned, consult the EBA: Provided that the competent authority, when it is the consolidating supervisor, may consult the EBA on its own initiative. S.L. 370.15.
such a joint decision within the time period referred to in sub-regulation
Articles 73, 86, 97, 104
the CRD as transposed in the Investment Services Rules and in the INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) [ S.L. 370.46. Investment Services Act (Supervisory Review) Regulations shall be taken by the competent authority, where it is acting as the consolidating supervisor, on a consolidated basis, after duly considering the risk assessment
subsidiaries performed by the relevant European regulatory authorities: Provided that: (a) if, at the end
the time period referred to in subregulation
the European regulatory authorities concerned have referred the matter to the EBA in accordance with Article 19
Regulation (EU) No 1093/2010, the competent authority shall defer its decision and await any decision the EBA may take in accordance with Article 19
the said Regulation. The competent authority shall take its decision in conformity with the decision
the EBA. The time period referred to in sub-regulation
Regulation (EU) No 1093/2010; (b) where the competent authority is not acting as consolidated supervisor but is responsible for the supervision
subsidiaries
an EU parent institution or an EU parent financial holding company or an EU parent mixed financial holding company, it may refer the matter to the EBA in accordance with Article 19
Regulation (EU) No 1093/2010. The matter shall not be referred to the EBA after the end
the time period referred to above in sub-regulation
a subsidiary
an EU parent credit institution or an EU parent financial holding company or an EU parent mixed financial holding company, which is a credit institution, and in the absence
a joint decision in terms
this regulation within the time period referred to in regulation 8, the competent authority shall decide on the application
Articles 73, 86, 97, 104
the CRD as transposed in the Investment Services Rules and in the Investment Services Act (Supervisory Review) Regulations on an individual or subconsolidated basis, after duly considering the views and reservations expressed by the consolidating supervisor: S.L. 370.15. Provided that if at the end
the time period referred to in regulation 8 and as transposed in the Investment Services Act (Supervisory Review) Regulations, any
the European regulatory S.L. 370.15. 13 14 [ S.L. 370.46 INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) authorities concerned have referred the matter to the EBA in accordance with Article 19
Regulation (EU) No 1093/2010, the competent authority shall defer its decision and await any decision that the EBA shall take in accordance with Article 19
the said Regulation. The competent authority shall take its decision in conformity with the decision
the EBA. The time period referred to above shall be deemed to be the conciliation period within the meaning
the said Regulation:
subsidiaries
an EU parent institution or an EU parent financial holding company or an EU parent mixed financial holding company, it may, in the event
any disagreement, refer a dispute to the EBA on its own initiative but prior to a joint decision being made, provided that no referral shall be made once the time period specified in regulation 8 has expired.
the competent authority or the other European regulatory authorities, as applicable, expressed during the time period referred to in sub-regulation
regulation 8 shall be recognised as determinative and shall be applied by the competent authority, where applicable.
sub-regulations
subsidiaries
an EU parent institution or an EU parent financial holding company or an EU parent mixed financial holding company which are investment firms, it may make a written and fully reasoned request to the consolidating supervisor to update the decision on the application
the CRD as transposed in the Investment Services Act (Supervisory Review) Regulations. In those exceptional circumstances, such update may be INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) [ S.L. 370.46. 15 addressed on a bilateral basis between the competent authority and the consolidating supervisor: Provided that, where the competent authority is the consolidating supervisor, it shall update the decisions at the request
the European regulatory authorities responsible for the supervision
subsidiaries
an EU parent institution, or an EU parent financial company, or an EU parent mixed financial holding company. The competent authority may address the update to the European regulatory authority making the request, on a bilateral basis. 9.
any information which is essential or relevant for the exercise
their respective supervisory tasks under the CRD, and the CRR. The competent authority shall communicate on request all relevant information and shall communicate on its own initiative all essential information.
the CRD and the CRR in accordance with Regulation (EU) No 1093/2010. Such co-operation shall include the provision to the EBA
all information necessary to carry out its duties under the CRD and the CRR and under Regulation (EU) No 1093/2010, in accordance with Article 35
Regulation (EU) No 1093/2010.
sub-regulation
the financial soundness
an investment firm or a financial institution in another Member State and shall include, in particular, the following items: (a) identification
the group’s legal structure and the governance structure including organisational structure, covering all regulated entities, non-regulated entities, nonregulated subsidiaries and significant branches belonging to the group, and the parent undertakings, in accordance with the relevant provisions
the Act and any regulations or Rules made thereunder transposing the requirements
the CRD; (b) identification
the European regulatory authorities
the regulated entities in the group, as the case may be; (c) procedures for the collection
information from the investment firms in a group and the verification
that information; Co-operation with other authorities. Amended by: L.N. 29
2022. 16 [ S.L. 370.46 INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) (d) adverse developments in investment firms or in other entities
a group, which could seriously affect the investment firms; and (e) significant penalties and exceptional measures taken by the competent authority in accordance with the CRD, including the imposition
a specific own fund requirement under Article 104
the CRD and the imposition
any limitation on the use
Advanced Measurement Approach for the calculation
the own funds requirements under Article 312
the CRR.
parent undertakings with all relevant information. In determining the extent
relevant information, the importance
those subsidiaries within the financial system in those Member States shall be taken into account.
an investment firm controlled by an EU parent institution, it shall whenever possible contact the consolidating supervisor when it needs information regarding the implementation
approaches and methodologies set out in the CRD and the CRR that may already be available to that consolidating supervisor. S.L. 370.15.
a specific own funds requirement under the Investment Services Act (Supervisory Review) Regulations, and the imposition
any limitation on the use
the advanced measurement approaches for the calculation
the own funds requirements under Article 312
the CRR, and where any such decision is
importance for the supervisory tasks
the European regulatory authorities concerned, the competent authority shall consult with the said European regulatory authorities before taking any such decision: Provided that where the competent authority intends to decide on such significant penalties or exceptional measures, it shall always consult the consolidating supervisor and may decide not to consult European regulatory authorities in cases
urgency or where such consultation could jeopardise the effectiveness
its decision. In such cases, the competent authority shall, without delay, inform the European regulatory authorities after taking its decision. (6A) The competent authority shall cooperate closely with the financial intelligence units and authorities entrusted with the public duty
supervising the obliged entities listed in points
INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) [ S.L. 370.46. Article 2
Directive (EU) 2015/849 for compliance with the said Directive within their respective competences and shall provide them with information relevant for their respective tasks under the CRD as transposed in Maltese Law, the CRR and under Directive (EU) 2015/ 849, provided that such co-operation and information exchange do not impinge on an on-going inquiry, investigation or proceedings in accordance with the criminal or administrative law
the Member State where the competent authority, financial intelligence unit or authority entrusted with the public duty
supervising the obliged entities listed in points
Directive (EU) 2015/849 is located.
the following situations: (
supervision on a consolidated basis, mixed-activity holding companies and their subsidiaries, or subsidiaries
an investment firm, a financial holding company or mixed financial holding company, which are not included within the scope
supervision on a consolidated basis,
any information which would be relevant for the purposes
supervision in accordance with the relevant provisions
the Act, and any regulations or Rules made thereunder transposing the requirements
and Chapter 3
the CRD.
the Act is not included in supervision on a consolidated basis under one
the cases provided for in Article 19
the CRR, the competent authority may ask the parent undertaking
such investment firm for information which may facilitate supervision
that subsidiary.
an investment firm, a financial holding company or mixed financial holding company which are not included within the scope
supervision on a consolidated basis for information which would be relevant for the purpose
supervising those subsidiaries. In such a case, the procedures for transmitting and verifying the information set out in regulation 16 shall apply.
its subsidiaries Exchange
information. 17 18 [ S.L. 370.46 INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) that are investment firms are situated in different Member States, the competent authority shall communicate to the European regulatory authorities concerned all relevant information which may allow or aid the exercise
supervision on a consolidated basis.
the parent undertaking to ask the parent undertaking to provide any information which would be relevant for the purposes
supervision on a consolidated basis. Such information shall be transmitted to the competent authority by the European regulatory authority concerned.
regulation 3, it shall, upon request by the European regulatory authority responsible for exercising such supervision, require the parent undertaking to provide any information relevant for the purposes
supervision on a consolidated basis and the competent authority shall transmit such information to the European regulatory authority making the request.
financial holding companies, mixed financial holding companies, financial institutions or ancillary services undertakings, the collection or possession
information shall not imply that the competent authority is required to play a supervisory role in relation to those investment firms or undertakings standing alone.
information does not imply that the competent authority plays a supervisory role in relation to the mixed-activity holding company and those
its subsidiaries which are not subsidiaries
an investment firm, a financial holding company or mixed financial holding company, which are not included within the scope
supervision on a consolidated basis. Co-operation with European regulatory authorities and the Commission. Amended by: L.N. 29
2022. 11.
supervising insurance undertakings in other Member States. Without prejudice to INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) [ S.L. 370.46. its responsibilities, the competent authority shall provide the authorities referred to in this sub-regulation with any information likely to simplify their task and to allow supervision
the activity and overall financial situation
the undertakings they supervise. (1A) Where, pursuant to regulation 3, the consolidating supervisor
a group with a parent mixed financial holding company is different from the coordinator determined in accordance with Article 12
Directive 2002/87/EC, the consolidating supervisor and the coordinator shall co-operate for the purpose
applying the provisions
the Act, and any regulations or Rules made thereunder transposing the requirements
the CRD, and under the CRR, on a consolidated basis. In order to facilitate and establish effective co-operation, the consolidating supervisor and the co-ordinator shall have written coordination and co-operation agreements in place.
supervision on a consolidated basis, and in particular any exchange
information between the competent authority and European regulatory authorities which is provided for in the CRD, shall be subject to professional secrecy requirements at least equivalent to those pursuant to the Malta Financial Services Authority Act and the Act. Cap. 330.
the financial holding companies or mixed financial holding companies referred to in Article 11
the CRR. Such a list shall be communicated to the European regulatory authorities, to the EBA and to the Commission. 12.
the Act, and
any regulations or Rules made thereunder transposing the requirements
the CRD, and the CRR, may, in specific cases, request a European regulatory authority to verify information concerning an investment firm, a financial holding company, a mixed financial holding company, a financial institution, an ancillary services undertaking, a mixed-activity holding company, a subsidiary which is an insurance company or other undertaking providing investment services which is subject to authorisation, or a subsidiary
an investment firm, a financial holding company or mixed financial holding company which is not included within the scope
supervision on a consolidated basis, situated in another Member State. The competent authority may carry out the verification itself, or if it so wishes participate in the verification.
its competence, act upon it by either carrying out the verification itself, by allowing the European regulatory authority making the request to carry out such verification or by allowing an auditor or expert to carry out such Request for verification
information. 19 20 [ S.L. 370.46 INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) verification. The European regulatory authority making the request may participate in the verification where it does not carry out the verification itself. Third country consolidated supervision. 13.
the Act, the parent undertaking
which is an investment firm or a financial holding company or mixed financial holding company, the head
fice
which is established in a third country, is not subject to consolidated supervision, the competent authority shall assess whether the investment firm is subject to consolidated supervision by a third country regulatory authority which is equivalent to that governed by the principles laid down in this regulation and the requirements
Part One, Title II, Chapter 2
the CRR.
the parent undertaking or
any
the regulated entities authorised in the Union or on its own initiative. The competent authority shall consult the other European regulatory authorities.
third country regulatory authorities are likely to achieve the objectives
consolidated supervision as defined in this regulation, in relation to investment firms licensed in terms
the Act, the parent undertaking
which has its head
fice in a third country. For this purpose, the competent authority shall consult the EBA before making a decision.
such equivalent supervision, the competent authority shall apply the provisions
the Act, and
any regulations or Rules made thereunder transposing the requirements
the CRD, and the CRR to the investment firm mutatis mutandis or apply other appropriate supervisory techniques which achieve the objectives
supervision on a consolidated basis
investment firms. Such supervisory techniques shall be agreed upon by the competent authority, as consolidating supervisor, after consultation with other European regulatory authorities involved. The supervisory techniques shall be designed to achieve the objectives
consolidated supervision as set out in this regulation and shall be notified to other European regulatory authorities involved, the EBA and the Commission.
a financial holding company or mixed financial holding company with its head
fice in the European Union, and apply the provisions on consolidated supervision to the consolidated position
that financial holding company or the consolidated position INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) [ S.L. 370.46. 21
the investment firms
that mixed financial holding company.
the CRD, request the Commission to submit proposals to the Council to negotiate agreements with one or more third countries regarding the means
exercising supervision on a consolidated basis over the following: (a) investment firms the parent undertakings
which have their head
fices in a third country; (b) investment firms situated in third countries the parent undertakings
which, whether investment firms, financial holding companies or mixed financial holding companies, have their head
fices in the Union. Part II - Establishment
Significant Branches 14.
the CRR, authorised in another Member State has established a branch in Malta, the competent authority may make a request to the European regulatory authority which is the consolidating supervisor, where Article 112
the home Member State
such investment firms, for that branch to be considered as significant.
the branch in terms
deposits exceeds 2% in Malta; (b) the likely impact
a suspension or closure
the operations
the investment firm on systemic liquidity and the payment, clearing and settlement systems in Malta; and (c) the size and the importance
the branch in terms
number
clients within the context
the banking or financial system
Malta.
the home Member State and, where Article 112
a branch as being significant.
receipt
a request under sub-regulation
significant branches (Host Authority). 22 [ S.L. 370.46 INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) shall take its own decision within a further period
two months on whether the branch is significant. In taking its decision, the competent authority shall take into account any views and reservations
the European regulatory authority which is the consolidating supervisor or the European regulatory authority
the home Member State.
the home Member State does not consult the competent authority, or where, following such consultation, the competent authority maintains that operational steps required by the Act and any regulations or Rules made thereunder transposing the requirements
the CRD, are not adequate, the competent authority may refer the matter to the EBA and request its assistance in accordance with Article 19
Regulation (EU) No 1093/2010. Establishment
significant branches (Home Authority). 15.
an investment firm licensed in terms
the Act or, other than an investment firm subject to Article 95
the CRR, which has established a branch in another Member State or is the consolidating supervisor, it may receive a request from the European regulatory authority
the host Member State where the branch is established, for such branch to be considered as significant. This request shall provide reasons for considering the branch to be significant with particular regard to the following: (a) whether the market share
the branch in terms
deposit exceeds 2% in the host Member State; (b) the likely impact
a suspension or closure
the operations
the investment firm on systemic liquidity and the payment and clearing and settlement systems in the host Member State; and (c) the size and the importance
the branch in terms
number
clients within the context
the banking or financial system
the host Member State.
a branch as significant, with the European regulatory authority
the host Member State where the branch is established and, where Article 112
the CRD applies, the European regulatory authority which is the consolidating supervisor. INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) [ S.L. 370.46.
the host Member State, where a significant branch is established, the following information referred to in regulation 9
the host Member State.
an emergency situation as referred to in regulation 5
their statutory tasks, including the conduct
monetary policy and related liquidity provision, the oversight
payments, clearing and settlement systems, and safeguarding the stability
the financial system, and it shall communicate all information that is essential for the pursuance
their tasks; (b) the ESRB where such information is relevant for the exercise
its statutory tasks; and (c) departments
government administrations in other Member States responsible for law on the supervision
investment firms, financial institutions and insurance undertakings and to inspectors acting on behalf
those departments.
the host Member State where the significant branch is established, the results
the risk assessment carried out in terms
the Investment Services Act (Supervisory Review) Regulations with respect to the investment firm licensed in Malta with such a branch and, where applicable, joint decisions on investment firm specific prudential requirements taken pursuant to the provisions
the Act and any regulations or Rules made thereunder transposing the requirements
the CRD. The competent authority shall also communicate decisions required by the Act and any regulations or Rules made thereunder transposing the requirements
Articles 104 and 105
the CRD in so far as those assessments and decisions are relevant to the branch.
the host Member State where the significant branch is established about operational steps required by the Act and any regulations or Rules made thereunder transposing the requirements
the CRD, where relevant for liquidity risks in the host Member State’s currency. S.L. 370.15. 23 24 [ S.L. 370.46 INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) Establishment
significant branches (General). 16. The designation
a branch as being significant shall not affect the rights and responsibilities
the competent authority under the Act, and any regulations or Rules made thereunder transposing the requirements
the CRD. Colleges
supervisors in the context
branches. 17.
supervisors to facilitate the co-operation in terms
regulation 15
the Act and any regulations or Rules made thereunder transposing the requirements
the CRD. The establishment and functioning
the college shall be based on written arrangements determined after consulting the European regulatory authorities concerned by the competent authority. The competent authority shall decide which European regulatory authorities participate in a meeting or in an activity
the college.
the relevance
the supervisory activity to be planned or coordinated for those European regulatory authorities, in particular, the potential impact on the stability
the financial system in the Member States concerned, and, in particular, in emergency situations based on the information available at the relevant time and the obligations referred to in regulation 15
the college fully informed, in advance,
the organisation
such meetings, the main issues to be discussed and the activities to be considered. The competent authority shall also keep all the members
the college fully informed, in a timely manner,
the actions taken in those meetings or the measures carried out. Prudential supervision
an investment firm. S.L. 370.10. 18.
an investment firm, including that
the activities it carries out in accordance the European Passport Rights for Investment Firms Regulations shall be the responsibility
the competent authority when such an investment firm is licensed in Malta, without prejudice to those provisions
the CRD and MiFID which give responsibility to the European regulatory authorities
the host Member State.
regulation 3.
an investment firm authorised in a Member State other than Malta, is established in Malta, any measures taken by the competent authority with respect to such branch shall not allow discriminatory or restrictive treatment on the basis that the investment firm to which the branch belongs is authorised in another Member State. INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE) [ S.L. 370.46. 25 Part III - Supervision
Mixed Activity Holding Companies and their subsidiaries and
Mixed Financial Holding Companies 19.
one or more investment firms licensed in terms
the Act is a mixed-activity holding company, the competent authority shall, by approaching the mixed-activity holding company and its subsidiaries either directly or via subsidiaries that are investment firms, require them to supply any information which would be relevant for the purpose
supervising those subsidiaries. Supervision
mixed activity holding companies and their subsidiaries.
its subsidiaries is an insurance undertaking, the procedure set out in regulation 11 may also be used. If a mixed-activity holding company or one
its subsidiaries is situated in a Member State other than Malta but is the parent undertaking
an investment firm licensed in terms
the Act, on-the-spot verifications
information shall be carried out in accordance with the procedure set out in regulation 12.
the CRR, where the parent undertaking
one or more investment firms licensed in terms
the Act is a mixed-activity holding company, the competent authority shall exercise general supervision over transactions between the investment firms and the mixed-activity holding company and its subsidiaries. 20.
the CRD, and under Directive 2002/87/EC
the European Parliament and
the Council
16 December 2002 on the supplementary supervision
credit institutions, insurance undertakings and investment firms in a financial conglomerates, in particular in terms
risk-based supervision, the competent authority may, as consolidating supervisor, after consulting the other European regulatory authorities responsible for the supervision
subsidiaries, apply only the latter Directive to that mixed financial holding company.
the CRD, and under Directive 2002/87/EC, in particular in terms
risk-based supervision, the competent authority may, as consolidating supervisor, after consulting the other European regulatory authorities responsible for the supervision
subsidiaries, apply only the latter Directive to that mixed financial holding company. Supervision
mixed financial holding companies. Amended by: L.N. 29
2022. 26 [ S.L. 370.46 INVESTMENT SERVICES ACT (SUPERVISORY CONSOLIDATION) (CAPITAL REQUIREMENTS DIRECTIVE)
the decisions taken under subregulations
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.